The paper "Effect of Globalisation on India" is a great example of a macro and microeconomics case study. The term globalization has grown from the last century to now dominate the world following the end of the cold war and the disintegration of the ex-Soviet Union; the world is now variously referred to as a ‘ global village’ . Globalization has been seen to be the main agenda in developing countries propagated by the World Bank along with other International organizations through the introduction of structural adjustments. Many of these countries are now opening up their boundaries owing to the augmented dependence on the international market economy and the new faith in private investments and capitals.
Globalization has come along with fresh prospects for developing countries. There is better access to markets in developed countries and technology transfer holds out capacity for enhanced productivity and advanced living standards (Stiglitz, 2002). On the other hand, globalization has introduced fresh challenges such as expanding the inequality gap across as well as within the countries, financial markets volatility, and environmental degradation. Also, quite a number of developing countries remain indifferent regarding the process.
Closing down to India, the country had tough restrictions on the liberalization of trade and investment and financial flows till the nineties that constrained globalization. However, as of the nineties India has gradually pulled down the barriers to external competition and speeded up the pace of globalization. This paper presents an overview of globalization from the perspective of India regarding the opening up of the Indian market and the beneficiaries. The Debate on Globalisation Globalization is now a prevailing actual feature of the new global economic order that exemplifies one of the most powerful forces that direct the imminent progression of this sphere.
It has various dimensions: economic, social, political, security, health, environmental, cultural, and others, but the center of attention here is economic. Even though the term was coined in the 1980s, up till now it has no singular formal definition. The concept does not have the same interpretation for different people. It could be said that owing to these dissimilar interpretations, there are exactly unlike rejoinders to globalization. Whereas some policymakers, researchers, and activists perceive it as a power for moving the world economy forward, some of their colleagues perceive globalization as a solemn threat to the global economic order.
For instance, Brainbant defines the globalization process as not only a means of opening up international trade, developing innovative communication channels and infrastructure, internationalization of financial and capital markets, the rising position of multinational corporations, along with an overall movement of people, goods, data, and intellectual property but also as a movement of contaminations, diseases, and pollution (Scheve & Matthew, 2001). Therefore, in this paper globalization is taken to be a way of increasing international trade and exchanges in a more open, cohesive, and borderless international market.
Globalization has led to an outstanding growth in trade and exchanges that include the traditional global trade in commodities, exchanges of currencies, technology transfer, capital movements, as well as a worldwide flow of data and ideas. This has been enabled through more openness in the international economy and global integration of plus the crusade headed for a borderless world, all of which have predisposed to increased global flows.
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